What should I buy in September? Johnson & Johnson JNJ, India Fund IFN, Wipro WIT or Boeing BA? September 7, 2007Posted by deminvest in BA, Boeing, investment, JNJ, Jonson & Johnson, Wipro.
My strategy suggests to buy $1000 worth of stock every month, no matter how unfit for new investments the month could be. This September looks very unfit by I have to make a…
I’d definitely like to buy:
- Johnson & Johnson because it is defensive: its health care products are bought even if the economy slows. Also JNJ has excellent numbers:
- It is cheap: Forward P/E 14,
- It is growing: Qtrly Revenue Growth (yoy) 13.20%, Qtrly Earnings Growth (yoy):9.30%
- It hardly has debts
- Last but not least It yields juicy 2.7% dividends.
- India Fund because I still think India has great opportunities and this closed end fund is trading at a favourable 10% discount. I called this fund a rip off when is used to trade at 30% premium, but now it is undervalued. Also IFN owns shares of many excellent Indian companies that are not available for Westner investors.
- Wipro is a fast growing Indian Software consulting company. I already decided I wanted to buy Wipro. Now WIT has far better numbers than it used to when I wrote the post linked above. Forward P/E : 20.46 is low for a company growing Qtrly Revenue Growth (yoy):33.60% and Qtrly Earnings Growth (yoy):15.70%. It has 0 debts and 1B cash. I like Wipro very much now.
- Boeing is a very healthy company. It is growing fast as global airline traffic soars. Their only competitor, Airbus, is troubled. BA should assure a great protection against risks of economic slowdown: their airplane production is fully booked for the next five years. BA is fairly cheap (Forward P/E :15.29), is nearly debt free, gives out some modest dividends ( yield 1.5%) and is a safe harbour for investors worried of the sbprime turmoil: Boeing products are already sold for the next 5 years. BA is also showing good revenue growth: (yoy) 13.60%, which is very good for a company that needs time to build each airplane and time to expand its factories.
Which should I chose?
Any help is welcome!